As Australia enters the so-called 'third era' of commerce, Agentic commerce, Macquarie Group Ltd (ASX: MQG) analysts have done a deep dive into how the new trend could disrupt the traditional retail sector and their ASX shares.
Is Agentic commerce going to replace the traditional ways consumers in Australia shop? Or is it just a new way for shoppers to discover new products?
What is Agentic commerce and how does it work?
Agentic commerce is a new method of online shopping where autonomous AI agents handle the entire purchase process for the customer.
For example, a customer might ask the AI agent to find a product, such as a women's outfit for a summer event, and the agent will locate suitable items at Universal Store Holdings Ltd (ASX: UNI) and assist in making the purchase and organising delivery.
Or, a customer could ask for a certain-sized coffee table to fit in a specific space, and the AI agent can assist in locating suitable options from ASX retail companies like Temple & Webster Ltd (ASX: TPW), Nick Scali Ltd (ASX: NCK), and Harvey Norman Ltd (ASX: HVN), make comparisons, and facilitate the purchase and shipping.
Unlike current AI tools that can offer assistance, Agentic commerce is an evolving model of shopping where autonomous AI agents act on behalf of consumers to handle the buying process with minimal human interaction.
How can it disrupt the traditional ASX retail sector?
Macquarie analysts explain that the internet and e-commerce have already enabled mass product discovery. However, Agentic search-powered discovery helps shoppers find what they want even if they cannot articulate exactly what.
"This contrasts with traditional search which matches words. Agentic search matches meaning using neural embeddings to understand context. Moreover, it makes browsing conversational and natural, and the future of retail discovery," Macquarie said.
Macquarie added: "The expectation is that AI is disruptive to traditional omni-channel retail as well as pure play verticals and marketplaces and could re-accelerate e-commerce growth because of better personalisation, discovery and curation."
Macquarie also pointed out that traditional retail was built around stores, their merchandise offer, and proposition. Marketers then segmented shopping into consumption occasions and trip types.
While this is still relevant, Agentic commerce is responsive to digital cues rather than physical or online product displays.
"In our opinion Agentic commerce will have a more significant impact on missions/trips than occasions. We expect the most disrupted missions will be Discover and Inspire where information demands are high and loyalty low. Discover missions will likely include expensive buyers (technology) and inspirational (beauty). Boring and cheap (essentials/staples) fit the Find mission and considered less contestable. Fun categories (sport) will fit the Discover mission," Macquarie said.
